LIC e-Term plan is an online term insurance plan offered by LIC Life Insurance Policy. As a comprehensive term insurance policy, the plan provides financial coverage to the family of the insured in case of any eventuality. LIC e-Term plan is one of the most acclaimed term plans among the wide range of products offered by the LIC.
As a pure protection plan, LIC e-Term plan can be purchased online in a simple and hassle freeway. Under LIC e-Term plan, a death benefit equal to the total sum assured amount is paid to the beneficiary of the policy in case of uncertain demise of the insured person during the tenure of the policy. As this is a pure term insurance plan, it offers an only death benefit and no maturity benefit is offered by the policy.
The policyholders can choose for a higher sum assured amount at an affordable premium rate. The LIC e-Term Policy offers different premium rates for non-smokers opting for a sum assured of Rs 50 lacs or more.
The following are the salient features of the LIC e-Term plan:
There are many different benefits offered by plan. Let’s take a look at e-Term policy in detail.
Here are the further LIC e-Term plan benefits offered by the policy.
In case of the unfortunate demise of the insured person during the tenure of the policy, a death benefit equal to the total sum assured amount of the policy is paid to the beneficiary of the policy.
No maturity benefit is offered by the policy as this is a pure term insurance plan.
The premium paid towards the policy up to the maximum limit of Rs.1.5 lakh is eligible for tax exemption under Section 80C of Income Tax Act.
Before purchasing the LIC e-Term Policy, it is important to check the eligibility criteria of the policy. Let’s take a look at the eligibility criteria of the policy.
|Entry Age (Last Birthday)||18 years||60 years|
|Maturity Age (Last Birthday)||-||75 years|
|Policy Term (PT) in years||10 years||35 years|
|Premium Paying Term (PPT) in years||Equal to Policy Tenure|
|Premium Paying Frequency||Annual|
|Sum Assured||Rs 25 Lacs||No Limit|
Annual premium in Rupees for a Policy Tenure of 15 years. Basic Premium is mentioned below (Tax not included)
|Age||Rs 50 Lacs Sum Assured||Rs 1CR Sum Assured|
Grace Period: 30 days’ grace period is allowed for premium payment. If the policyholder fails to make payment within the grace period, the policy lapses
Policy Termination or Surrender Benefit: There are no surrender benefits available in this plan
Free Look Period: If the policyholder is not satisfied with the terms and conditions of the policy, then he/she can cancel the policy within the free-look period of 15 days from the date of policy initiation.
Loan- No loans are offered by LIC e-Term plan.
When it comes to suicide committed within 12 months of policy inception, only 80% of premiums paid are returned to the nominee. When it comes to suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid.
The documents that should be kept handy while purchasing the LIC e Term Policy are:
The policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. A medical examination may be needed in some cases, based on the sum assured and the age of the person.
If the beneficiary of the policy file claim against the LIC e-Term plan in case of the unfortunate demise of the insured person then certain documents are required to be submitted by the nominee of the policy to fulfill the process of claim. Let’s take a look at the documents that should be kept handy while filing the claim.
More Useful Resources
LIC Online Services
LIC Term Plans
LIC Other Plans